(NC)-Global economics are cyclical. We are coming off an unprecedented decade of economic growth. As the cycle begins to enter a decline, business owners are presented with unique challenges and opportunities. While it's important to hope for the best, it's essential to plan for the worst.
"BMO is open for business and if you're looking for small business financing or advice, talk to us first," said Gail Cocker, head of small business banking at BMO Bank of Montreal. "BMO ranks second in Canadian business lending market share, and we are aiming to become the number one commercial bank in the country. We have more than 185,000 small and mid-market business clients across Canada representing $57 billion in business loans and deposits. Our expert team is well positioned to help business owners get through the current economic uncertainty."
The following is a list of tips to help your small business survive through turbulent times.
1. Map out a business plan and stick to it. Detail both short and long-term goals, taking into account as many factors as possible. Ensure your plan addresses operational functions such as the development of a solid information and reporting system to help you manage your cash flow, growth targets, or even an action plan to get more customers and increase sales.
2. Create an Advisory Council. Build a close relationship with a commercial banker, lawyer, accountant and others who can help you understand industry risks, provide advice and even networking opportunities.
3. Manage Your Finances. It's always a good idea to build up a cash reserve in a savings account to handle unforeseen emergencies. In cases where you need to borrow, seek out financing products designed with flexible features to meet your objectives such as a small business line of credit or small business homeowners' line of credit. These products can provide a variable-rate credit facility with a very competitive interest rate giving small business owners the flexibility and convenience to access available credit limits and borrow only what you need, when you need it.
4. Avoid the Pitfalls. Entrepreneurs are optimistic by nature -- which is a good thing. Regardless, contingency planning should be of paramount importance particularly in times of economic volatility. If you don't already have a contingency plan (a.k.a backup plan or plan "B"), you should create one so that you are prepared for a rainy day and can take calculated, planned actions to recover quickly. The last think you want to do is make last minute decisions in times of stress.
5. Stay informed. Subscribe to your local and national newspapers, trade publications and online resource guides to stay on top of current affairs. Time-pressed business owners can download the free BMO Business Coach podcast series featuring Profit Magazine editor Ian Portsmouth at www.bmo.com/podcast.
- News Canada